Buying at auction

[Bellalastrasse]

Hello! I am a ftb looking at auction properties. My understanding is that NatWest will give a mortgage for buying at auction however you only have 28 days after auction to pay the full amount and sometimes the banks won’t process a mortgage application within that time. I have just discovered that there are finance companies that provide bridging loans for this purpose.

It seems that now, using a bridging loan for security and then securing with a high st mortgage it is post to buy at auction.

The only problems I can foresee are with the property - perhaps after valuation the bank won’t offer a mortgage and that if you haven’t had a proper survey you discover a huge problem but considering this - it still seems worth it to me. What am I missing?

*post should be possible

Don't forget the large fees also payable....some auction properties also fetch more than via agents....!!

Yes, fees and the bridging loans fees are very pricey.

The biggest problem I think is getting a good valuation so that it is worth bidding on and that your bank will agree. No good buying it then bank valuing it and finding it’s not worth as much, I guess.

I think it may be the only way though. In the past, banks wouldn’t provide mortgages so it was not a popular option but nowadays I think it could work.